AAK Reports Solid Q4 Profit Growth
04 Feb 2015 --- Swedish Ingredients company AarhusKarlshumn (AAK) has reported solid operating profit of SEK 343m (€36.3m) in its Q4 results, mainly driven by a strong improvement in its Chocolate & Confectionery Fats. The results represent a 5% improvement on the same period last year.
Chief Executive and President Arne Frank commented on the results, highlighting that Chocolate & Confectionery Fats were driving the success: “Food Ingredients Improved despite some continued headwinds. Food Ingredients reported, all in all, a stable quarter, however, with a very mixed picture.
“Based on AAK’s customer value propositions for health and reduced costs, and our customer product co-development and solutions approach, we continue to remain prudently optimistic about the future,” he concluded.
Volumes increased by 9% compared to the fourth quarter 2013 mainly due to the acquisitions in Belgium and Colombia. Organic volume grew by 1%, and the Food Ingredients division as well as Chocolate & Confectionery Fats reported organic growth of 2%. Dairy solutions reported high single-digit growth and Infant Nutrition product range Akonino continued to grow.
However, as expected, the InFat business through Advanced Lipids AB, a joint venture of AAK and Enzymotec, continued to struggle in the important Chinese market and the new direct tax in Mexico continued to negatively impact the bakery segment. However, commodity products showed exceptional volume growth and Chocolate & Confectionery Fats developed very well with double-digit growth for Cocoa Butter Equivalents (CBE). The market interest in CBE continues to be strong. Significantly worsening market conditions in Ukraine and Russia impacted volumes negatively in the quarter.
The company is following its strong expansion plan and in 2015 the construction of the new factories in Brazil and China will continue, as well as the implementation of AAKtion, a program intended to further strength the company’s focus on Sales-Innovation-Execution.
